The European Commission has approved a €408 million Spanish scheme to support the decarbonisation of manufacturing industry, in line with the objectives of the Clean Industrial Deal . This measure will contribute to the transition towards a net-zero economy and is funded under the Recovery and Resilience Facility ('RRF'). The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025 .
The Spanish measure
Spain notified to the Commission, under the CISAF, a €408 million scheme to support the decarbonisation of manufacturing industry, which contributes to the objectives of the Clean Industrial Deal. The scheme will be fully financed by the RRF, following the Commission's positive assessment of the Spain's recovery and resilience plan and its adoption by the Council.
The purpose of the scheme is to support the decarbonisation of manufacturing processes in existing installations through the deployment of investments contributing to reductions of greenhouse gas (GHG) emissions from industrial activities, and the improvement of the energy efficiency of industrial processes.
Spain expects annual GHG emission savings of around 1.6 megatonnes of CO2. The measure will support investments into technologies such as electrification, shifting to renewable or low-carbon hydrogen, recovery of waste heat, carbon capture, storage and utilisation, in a wide range of sectors including chemicals, ceramics, paper and metallurgy. Under the scheme, the aid will take the form of direct grants. The measure will be open to enterprises of all sizes, and to installations and sectors within and outside of the Emission Trading System.
The Commission found that the Spanish scheme is in line with the conditions set out in sections 3 and 5 of the CISAF.
Under the scheme, the aid amount is determined based on the eligible investment costs and pre-defined aid intensities (the percentage of supported costs), in line with the CISAF. Aid will be granted to eligible projects on a first-come, first-serve basis until the budget is exhausted. Projects need to be in operation at the latest 60 months after the aid is granted. To limit the undue distortion of competition, the aid cannot be used to finance an increase in the production capacity of the beneficiary. The maximum aid amount per company per project is capped at €200 million.
The Commission concluded that the Spanish scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal . This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.
On this basis, the Commission approved the aid measure under EU State aid rules.
Background
On 25 June 2025, the Commission adopted the CISAF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal.
The CISAF allows following types of aid, which can be granted by Member States until 31 December 2025 in order to accelerate the green transition:
- Measures accelerating the rollout of renewable energy and low-carbon fuels (sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
- Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help to avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonisation of the EU's electricity system fully translates into lower electricity prices.
- Measures facilitating the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
- Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for strategic projects in line with the Net Zero Industry Act (such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage). This also includes the production of key components and the production and recycling of related critical raw materials.
- Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonisation, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).
